Question1. “Risk of diversified portfolio is much lower than risk of less-diversified portfolio”. What is the relevance of this statement to finance managers who are computing commercial projects?
Question2. “There is no universal answer to the question of impact of debt on value of firm”. What are the cost and benefits of using debt in capital structure?
Question3. Why is capital structuring decisions in evaluation project cash flows ignored? How is capital structuring in project evaluation treated?
Question4. “If markets are not efficient, financial managers would find it extremely hard in taking rational decisions”. Explain
Question5. Explain the significance of financial restructuring and asset restructuring in creating value.